The new legislative initiative of the European Union was supposed to severely hit bitcoin but this did not happen. The number one cryptocurrency has once again perfectly withstood the blow. It is possible that in the future, the adoption of the new law will shake BTC's position but not in the first round.
Thus, the European Union has advanced to the active phase of implementing the proposal of the Financial Action Task Force (FATF) combating money laundering within the territory of the EU. The EU authorities are preparing to prohibit exchanges, wallet operators, and any companies to accept and make digital currency transactions without full personal data following the KYC guidelines. In other words, Europe is preparing for a deanonymization. So, it is likely to become the first jurisdiction that accepted new rules.
Experts assume that it will take about two years to agree on the legislative initiative but the first step has already been taken. The EU authorities are more than serious by the sound of things.
Some might say that what could be worse. However, judging by the charts, neither bitcoin nor altcoins seem to have remained unaffected by the news. Perhaps in the future, when other developed countries follow the suit, the reaction will be rather different. At the same time, many independent analysts are expecting a serious collapse in the crypto market. Some of them are even waiting for a new crypto winter. Bloomberg and Coindesk analysts point out that the falling of BTC led to breaking the MA 50. It is the third case in the history of BTC trading. The first two resulted in a massive sell-off. The situation looks as if the bullish trend is completely broken. It is possible that bitcoin may fall to $23 300 or even $18 000. It is likely that the steepest decline may force the coin to challenge the bottom near $10 000 eclipsing the rally from October 2020.
